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Saturday, January 18, 2014

No Rush to Buy Potash Stocks

Last summer, fertilizer stocks plummeted on fears that the
Russia-Belarus potash dispute would flood the market with cheap potash.
The issue sent shares of Mosaic (NYSE: MOS) and Potash (NYSE: POT) plunging and didn't help Agrium (NYSE: AGU) either.

Fertilizer stocks have been interesting investments over the last few
years with the long-term theme of demand from emerging markets not
playing out. On the flip side, the dispute between Russia and Belarus
brought to the surface the pricing structure in the potash market that
might not be sustainable.